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Americans dedicated to long-term financial well-being, survey shows

Americans are devoted to preserving their long-term financial well-being and would rather give up eating at restaurants and using technology than stop saving for retirement, a new survey shows. Just 2% of the 1,005 U.S. adults participating in a telephone survey said the one action they most likely would take

FASB to issue proposals on three EITF issues

FASB decided Monday to expose for public comment three proposed Accounting Standards Updates (ASUs) based on consensuses reached at the March 15 meeting of the Emerging Issues Task Force (EITF), according to its summary of board decisions. The proposed ASUs deal with sales of donated securities by not-for-profits; accounting for

IRS creates priority phone service for correspondence audits

The IRS on April 2 launched a new toll-free phone service for tax professionals to use when responding to correspondence examination telephone calls or letters. The IRS calls the new service the Practitioner Priority Service (PPS). Practitioners can call a toll-free number (866-860-4259) and select the correspondence examination option (option

AICPA seeks some changes to COSO’s updated framework proposal

The AICPA is suggesting changes to the proposed, updated internal control framework of the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In a comment letter, the AICPA wrote that the framework will be a valuable resource for practitioners. But the AICPA also described concerns, some of which are

CAQ seeks more transition guidance in updated internal control framework

The Center for Audit Quality (CAQ) would like the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to provide more transition guidance for users implementing COSO’s updated internal control framework. COSO is updating its 20-year-old internal control framework to provide a fresh, modern approach with explicit advice and implementation

TIGTA recommends improvements to IRS cybersecurity system

The Treasury Inspector General for Tax Administration (TIGTA) reports that the IRS’s computer security response center is performing effectively, but further improvement is needed (TIGTA Rep’t No. 2012-20-019 (3/12/12)). Part of TIGTA’s mandate is to review the adequacy and security of IRS technology. From March through September 2011, TIGTA performed

Medical Center’s FICA refund claim dismissed as untimely

The First Circuit Court of Appeals dismissed a suit for refund of Federal Insurance Contributions Act (FICA) taxes Maine Medical Center mistakenly paid for its medical residents in the 2001 tax year, upholding a lower court determination that Maine Medical’s discovery requests were not warranted and that the information it

GASB issues guidance on deferred outflows and deferred inflows, plus technical corrections

In separate statements of standards for state and local governments issued Monday, GASB clarified the appropriate reporting of deferred outflows and deferred inflows of resources, and issued technical corrections to resolve conflicting accounting and financial reporting guidance. GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities, and

Some tax-exempt organizations are receiving erroneous penalty notices; relief available

Practitioners are reporting that some tax-exempt organizations have received penalty notices from the IRS for late filing of Forms 990, 990-EZ, 990-PF, and 1120-POL, even though they received an automatic extension and filed during March, as instructed by the IRS. The IRS’s e-filing computer system was not available for filing

Court upholds IRS’s denial of college insurance fund’s application for tax exemption

An association of tax-exempt secondary schools and universities in Florida formed to pool insurance risk and obtain insurance for its members did not qualify for federal tax-exempt status because it fell under the prohibition against exemption for commercial-type of insurance companies in Sec. 501(m) (Florida Indep. Colleges & Universities Risk

IRS and OECD separately address transfer pricing issues

On Tuesday, the IRS announced a reorganization of its advance pricing agreement (APA), mutual agreement, and competent authority programs into one new program (IR-2012-38). All three programs dealt with transfer pricing rules, which determine how international transactions within a multinational company must be priced to ensure each country receives its

Audit rotation debated in House subcommittee hearing

Members of Congress asked pointed questions of PCAOB Chairman James Doty on Wednesday as the hot topic of mandatory audit firm rotation was debated during a wide-ranging discussion of accounting and auditing issues in front of a House subcommittee. Rep. Scott Garrett, R-N.J., the chairman of the House Subcommittee on

Auditor’s reporting model proposal scheduled for third quarter

The PCAOB’s proposed changes to the auditor’s reporting model are on track to be issued for public comment in the third quarter of 2012, according to a standard-setting agenda the board released Monday. PCAOB Chairman James Doty said in December that he thought the proposal would be out by the

Global economic survey, pension accounting discussion coming this week

The AICPA and the Chartered Institute of Management Accountants on March 29 will release results of the first CGMA Global Economic Survey. The quarterly survey is designed to capture the views of CGMA executives on economic conditions worldwide and in their respective countries. A panel of leading CGMA executives will

TIGTA calls for improvements to IRS volunteer tax prep program database

The Treasury Inspector General for Tax Administration (TIGTA) reported Monday on its study of the IRS’s monitoring of volunteer tax preparation services (TIGTA Report No. 2012-40-021 (2/23/12)). The IRS has developed a database, the Stakeholder Partnerships, Education and Communication Total Relationship Management System (SPECTRM), to monitor the performance of organizations

Repurchase agreements added to FASB’s agenda

In response to concerns from stakeholders, FASB on Wednesday added repurchase agreements and similar transactions to its agenda. In repurchase agreements, an entity transfers financial assets with an agreement that entitles and obligates the transferor to repurchase the financial assets at a fixed price at a later date. If the

Roth IRAs cannot be S corporation shareholders, Ninth Circuit holds

The Ninth Circuit, affirming the Tax Court, held that a corporation whose sole shareholder was a Roth IRA was not a valid S corporation when it was created in 2003 (Taproot Administrative Services, Inc., No. 10-70892 (9th Cir. 3/21/12), aff’g 133 T.C. 202 (2009)). The taxpayer who established the Roth

PCAOB panelists say mandatory firm rotation could be harmful, helpful

Panelists voiced opposing views of mandatory audit firm rotation Wednesday during the first of two days of PCAOB hearings on the concept. Critics of mandatory rotation said it would be costly with questionable benefits, while proponents said rotation would increase auditors’ objectivity. Many panelists proposed strategies other than rotation that

FROM THIS MONTH'S ISSUE

Making the right choice when no one is watching

The true test of one’s character is the decision made when no one is looking over your shoulder. Learn how CPAs can uphold ethical standards and take actions that help limit liability risk.

From The Tax Adviser

May 31, 2026

Trust distributions: Timing, tax, and practical considerations

May 31, 2026

Current developments in taxation of individuals: Part 3

April 30, 2026

Current developments in taxation of individuals: Part 2

April 30, 2026

Hedge funds: Tax structuring, planning, and compliance